What Affects the Appraisal Value of a House?

An appraisal helps determine the market value of a home.

A professional home appraisal is one way a mortgage company can be confident that it&amp;#039;s not lending too much money on a property. It is also how a potential home buyer can be assured that he&amp;#039;s not spending more for a home than it&amp;#039;s actually worth. For between $200 and $400, a home appraiser will offer an unbiased view of a home&amp;#039;s market value.

Location

It stands to reason that property in a high-crime area will not appraise for as much as similar property in a safer area, but there are other, more subtle, reasons location determines the value of a home. How near your home is to shopping, schools, medical facilities and major highways all play a role in determining its value. Few people want have any of these in their backyard, but would like to cut down on their commute time by having them near. A home in an area with services available nearby is likely to appraise at a higher value than a comparable home in a rural area.

Comparables

The value of your home appraisal is directly impacted by the value of homes comparable to your home that have sold in the recent past. An appraiser will take a critical look at those properties using information available from tax records, the Multiple Listing Service and the county. He will likely do a field inspection of the exterior of the homes that have sold to check how they measure up to your place. The price for which these homes sold will be the basis for how he establishes the value of yours.

Amenities

The appraiser will compare the upgrades and amenities of your home to those in the comparable homes she locates. Every upgrade you have made will increase the value of your property. Every upgrade the other homes have that yours does not, will decrease its value. An updated kitchen and bathrooms, energy-saving central air, and even hardwood flooring will increase the amount of your appraisal.

Condition

The overall condition of your home is vital to the appraisal you receive. The appraiser will look at the home through the eyes of a potential buyer, seeking issues that may cause a buyer to want to pay less for it. Your home&#039;s market value can be increased simply by making sure it is clean, uncluttered, and that minor issues like outdated light fixtures and peeling paint have been addressed.

Neighborhood

The precise neighborhood you live in makes a difference. An appraiser will take into account what the homes to either side of yours look like. He will check the quality of your neighborhood schools, if there is a homeowner&#039;s association and how well they help maintain the quality of the neighborhood. A comparable home in a nearby, but better kept, neighborhood could appraise at a higher value than a home located in a neighborhood on the decline.

About the Author

Dana Sparks has been a professional writer since 1990. As a staff reporter, she has written hundreds of newspaper and magazine articles, and she is also the author of two published novels. Sparks holds a Bachelor of Arts in business.

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